RIVERWOODS, Ill., Jul 01, 2008 (BUSINESS WIRE) -- Discover Financial Services (NYSE: DFS) today announced the
completion of its acquisition of Diners Club International from Citi
(NYSE: C).
Discover will significantly enhance its competitive position in
the global payments business through this acquisition, said David
Nelms, chief executive officer of Discover. It provides us with a
path to achieving global acceptance, establishing new international
partnerships and generating higher payments volumes.
Discover acquired the Diners Club International network for USD
165 million in a deal that brings more than USD 30 billion per year in
spend volume outside of North America; the Diners Club brand and
trademarks; its employees; and agreements with 44 network licensees
who issue Diners Club cards and maintain an acceptance network in 185
countries and territories worldwide.
There are many factors that have impressed us about Diners Club,
including the strength of its brand overseas, its relationships with
some of the world's major banks, and its product variety, said Harit
Talwar, executive vice president, Discover Network. Foremost among
them, though, is the commitment of Diners Club International licensees
and the positive response we have received from them. We look forward
to working closely with them to grow the Diners Club brand and to
leveraging the synergies that will arise from integrating two great
networks.
About Discover Financial Services
Discover Financial Services (NYSE: DFS) is a leading credit card
issuer and electronic payment services company with one of the most
recognized brands in U.S. financial services. The company operates the
Discover Card, America's cash rewards pioneer. Since its inception in
1986, the company has become one of the largest card issuers in the
United States. Its payments businesses consist of the Discover
Network, with millions of merchant and cash access locations; PULSE,
one of the nation's leading ATM/debit networks; and Diners Club
International, a global payments network with acceptance in 185
countries and territories. For more information, visit
www.discoverfinancial.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are based upon the current beliefs and expectations of
Discover Financial Services' management and are subject to significant
risks and uncertainties. Actual results may differ materially from
those set forth in the forward-looking statements. These
forward-looking statements speak only as of the date of this press
release, and there is no undertaking to update or revise them as more
information becomes available. The following factors, among others,
could cause actual results to differ materially from those set forth
in the forward-looking statements: the actions and initiatives of
current and potential competitors; our ability to manage credit risks
and securitize our receivables at acceptable rates; changes in
economic variables, such as the number and size of personal bankruptcy
filings, the rate of unemployment and the levels of consumer
confidence and consumer debt; the level and volatility of equity
prices, commodity prices and interest rates, currency values,
investments, other market fluctuations and other market indices; the
availability and cost of funding and capital; access to U.S. debt and
deposit markets; losses in our investment portfolio; the ability to
increase or sustain Discover Card usage or attract new cardmembers and
introduce new products and services; our ability to attract new
merchants and maintain relationships with current merchants; our
ability to successfully integrate the Diners Club International
network and maintain relationships with network participants; material
security breaches of key systems; unforeseen and catastrophic events;
our reputation; the potential effects of technological changes; the
effect of political, economic and market conditions and geopolitical
events; unanticipated developments relating to lawsuits,
investigations or similar matters; the impact of current, pending and
future legislation, regulation and regulatory and legal actions; our
ability to attract and retain employees; the ability to protect our
intellectual property; the impact of our separation from Morgan
Stanley; the impact of any potential future acquisitions; investor
sentiment; and the restrictions on our operations resulting from
indebtedness incurred during our separation from Morgan Stanley.
Additional factors that could cause Discover Financial Services'
results to differ materially from those described in the
forward-looking statements can be found in the company's annual report
on Form 10-K for the year ended November 30, 2007, filed with the SEC
and available at the SEC's internet site (http://www.sec.gov).
SOURCE: Discover Financial Services
Discover Financial Services
Investors:
Craig Streem
+1-224-405-3575
or
Media:
Leslie Sutton
+1-224-405-3965